|
Online Gambling: New US Bill will Regulate and License Industry |
|
|
|
|
Written by Thomas Jensen
|
|
Friday, 27 April 2007
|
|
 Barney Frank, House Financial Services Committee Chairman, has introduced legislation to that would lift an online gambling ban imposed by Congress in 2006. The new bill will raise tens of billions of dollars and will be welcome news to the online gambling industry.
"The fundamental issue here is a matter of individual freedom," Frank told a news conference, adding his committee would hold a hearing on the matter in June.
The online gambling has been expanding rapidly outside of the United States or gone underground within American shores. Frank has called the Unlawful Internet Gambling Enforcement Act of 2006 the "stupidest law ever passed" and has outlined a bill to make it legal again for banks and credit card companies to make payments to online gambling sites.
The new bill includes provisions for licensing and regulating online gambling companies to protect against underage gambling, compulsive gambling, money-laundering and fraud.
"There's a group of (voters) who've been activated here," Frank said.
Antigua & Barbuda has already won a landmark internet gambling case over the United States at the World Trade Organization. The WTO recently released the official 215 page report declaring that the United States failed to change legislation that unfairly targets internet gambling websites. The WTO agreed with Antigua and stated that the United States could only block such websites if its laws were equally applied to domestic firms that offer other forms of internet gambling such as remote betting on horse racing.
In a letter to President George W. Bush, Arizona Senator Jon Kyl bragged about wiping out over $7 billion in market capitalization from AIM listed publicly traded gaming companies. Kyl’s actions and UIGEA bothered the European Union which is home to several internet gambling firms that were forced to withdraw from the United States. After a visit from Frank, the EU internal market chief Charlie McCreevy hinted he may challenge the ban at the World Trade Organization just like Antigua did.
Internet gambling firms have long contested that the US move is simply protectionism. Frank's bill would put us in compliance with the WTO ruling.
|
|
Last Updated ( Friday, 27 April 2007 )
|
